Sasol
Encyclopedia
Sasol Ltd. is a South African company involved in mining, energy, chemicals and synfuels
. In particular, they produce petrol and diesel profitably from coal and natural gas using Fischer-Tropsch process
. The company has factories at Sasolburg
and Secunda (Secunda CTL) and has taken a stake in projects under construction in Qatar (Oryx GTL
), Iran (Arya Polymers
) and Nigeria (Escravos GTL
). Sasol senior officials are also from time to time involved in senior level negotiations with their China counterparts with the view on establishing a chemical plant in China, being the fastest growing economy in the world.
Sasol's primary business is based on CTL (coal-to-liquid) and GTL (gas-to-liquid) technology and this differentiates it from other petrochemical companies. CTL and GTL plants convert coal and natural gas respectively into liquid fuels. Sasol's early experience was in South Africa. Sasol's original CTL plant at Sasolburg
was commissioned in 1955. It was subsequently converted into a GTL facility and is still in operation. Two large CTL production facilities were commissioned in the early 1980s in Secunda and now form the single largest and most profitable asset in Sasol's global portfolio. In the early 1990s, at the request of the South African Government, Sasol licensed a GTL process to PetroSA, the South African state-owned oil company. This plant is also still in operation.
During the mid-1990s, Sasol sought to globalise by approaching natural gas and coal resource owners to form CTL and GTL joint venture companies. Sasol owns a stake in the Oryx GTL plant in Qatar
that was commissioned in 2007. Sasol, Petronas
, and Uzbekneftegaz
have signed an agreement to establish a joint venture for developing the Uzbekistan GTL
project. Sasol also had an economic interest in the Escravos GTL plant, which is currently being constructed in Nigeria and is due to be commissioned in 2011. Sasol is currently also conducting feasibility studies relating to potential CTL plants in China, South Africa, and the United States of America.
There are four basic phases in a CTL or GTL plant: (i) gasifying the coal into synthesis gas or reforming natural gas into synthesis gas, which is primarily a mixture of carbon monoxide and hydrogen; (ii) purification of the synthesis gas to remove impurities such as sulphur; (iii) turning the gas into a liquid; and (iv) processing that liquid into fuel.
Apart from the GTL and CTL businesses Sasol also has a widely diversified chemical business. A number of chemicals are extracted from the FT processes. These include solvents, co-monomers, ethylene, propylene and Fischer Tropsch waxes. Sasol also produces ammonia and associated downstream fertilisers and explosives. Sasol has a global polymers business which produces polymers in South Africa and has joint venture interests in cracker and polymer ventures in the Middle East and Asia. In 2001 Sasol acquired the chemical business of Condea which produces olefins and surfactants primarily in Europe and the USA.
team during the 1992, 1993 and 1994 Formula One World Championship seasons.
Sasol was the shirt sponsor of the Springboks
(the South Africa national rugby union
team) and continues to sponsor the Sasol Tigers aerobatic team flying Aero L-29 Delfin
.
Sasol was a founding partner of the South African National Youth Orchestra Foundation
in 1979, and is currently still supporting this foundation.
The company also sponsors the SASOL Birds of Southern Africa bird field guide
.
Sasol also had to pay a €318-million fine to the European Commission (EC), which is about R7,9-billion, for participating in a paraffin wax cartel. Despite its indication that it would appeal the fine amount, the full amount had to be paid to the EC within three months of the fine being issued.
Synthetic fuel
Synthetic fuel or synfuel is a liquid fuel obtained from coal, natural gas, oil shale, or biomass. It may also refer to fuels derived from other solids such as plastics or rubber waste. It may also refer to gaseous fuels produced in a similar way...
. In particular, they produce petrol and diesel profitably from coal and natural gas using Fischer-Tropsch process
Fischer-Tropsch process
The Fischer–Tropsch process is a set of chemical reactions that convert a mixture of carbon monoxide and hydrogen into liquid hydrocarbons. The process, a key component of gas to liquids technology, produces a petroleum substitute, typically from coal, natural gas, or biomass for use as synthetic...
. The company has factories at Sasolburg
Sasolburg
Sasolburg is a large industrial town in the far north of the Free State province of South Africa. Sasolburg is further sub-divided into three areas: Sasolburg proper, Vaalpark and Zamdela...
and Secunda (Secunda CTL) and has taken a stake in projects under construction in Qatar (Oryx GTL
Oryx GTL
ORYX GTL is a synthetic fuel plant based in Ras Laffan Industrial City, Qatar, that is owned by Qatar Petroleum and Sasol . It uses gas to liquids technology for converting natural gas into liquid petroleum products. The capacity of Oryx GTL is of oil. When commissioned, it was the world's first...
), Iran (Arya Polymers
Aryasasol
Aryasasol Polymer Company is a $900-million polymer joint venture between the Iranian state-owned petrochemicals company, Pars Petrochemicals Company and Sasol Polymers which produces ethylene as well as high and low density polyethylene. Iran and South Africa have equally invested 1.35 billion...
) and Nigeria (Escravos GTL
Escravos GTL
Escravos GTL is a gas to liquids project based in Escravos region, Nigeria. It is located in the Niger Delta about southeast of Lagos. The plant will convert natural gas into liquid petroleum products.-History:...
). Sasol senior officials are also from time to time involved in senior level negotiations with their China counterparts with the view on establishing a chemical plant in China, being the fastest growing economy in the world.
Operations
Sasol is a global petrochemical group producing fuels and chemicals. Sasol Limited, the holding company of the Sasol group, is jointly listed on the Johannesburg and New York stock exchanges.Sasol's primary business is based on CTL (coal-to-liquid) and GTL (gas-to-liquid) technology and this differentiates it from other petrochemical companies. CTL and GTL plants convert coal and natural gas respectively into liquid fuels. Sasol's early experience was in South Africa. Sasol's original CTL plant at Sasolburg
Sasolburg
Sasolburg is a large industrial town in the far north of the Free State province of South Africa. Sasolburg is further sub-divided into three areas: Sasolburg proper, Vaalpark and Zamdela...
was commissioned in 1955. It was subsequently converted into a GTL facility and is still in operation. Two large CTL production facilities were commissioned in the early 1980s in Secunda and now form the single largest and most profitable asset in Sasol's global portfolio. In the early 1990s, at the request of the South African Government, Sasol licensed a GTL process to PetroSA, the South African state-owned oil company. This plant is also still in operation.
During the mid-1990s, Sasol sought to globalise by approaching natural gas and coal resource owners to form CTL and GTL joint venture companies. Sasol owns a stake in the Oryx GTL plant in Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
that was commissioned in 2007. Sasol, Petronas
Petronas
PETRONAS, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and...
, and Uzbekneftegaz
Uzbekneftegaz
Uzbekneftegaz ) is a state-owned holding company of Uzbekistan's oil and gas industry.-History:Uzbekneftegaz was established in 1992...
have signed an agreement to establish a joint venture for developing the Uzbekistan GTL
Uzbekistan GTL
Uzbekistan GTL is a planned gas-to-liquids project based in northern Uzbekistan.-History:Construction of a GTL plant in Uzbekistan was discussed between Uzbekneftegaz and Abu Dhabi's International Petroleum Investment Company in March 2008. However, in April 2009 Uzbekneftegaz signed a heads of...
project. Sasol also had an economic interest in the Escravos GTL plant, which is currently being constructed in Nigeria and is due to be commissioned in 2011. Sasol is currently also conducting feasibility studies relating to potential CTL plants in China, South Africa, and the United States of America.
There are four basic phases in a CTL or GTL plant: (i) gasifying the coal into synthesis gas or reforming natural gas into synthesis gas, which is primarily a mixture of carbon monoxide and hydrogen; (ii) purification of the synthesis gas to remove impurities such as sulphur; (iii) turning the gas into a liquid; and (iv) processing that liquid into fuel.
Apart from the GTL and CTL businesses Sasol also has a widely diversified chemical business. A number of chemicals are extracted from the FT processes. These include solvents, co-monomers, ethylene, propylene and Fischer Tropsch waxes. Sasol also produces ammonia and associated downstream fertilisers and explosives. Sasol has a global polymers business which produces polymers in South Africa and has joint venture interests in cracker and polymer ventures in the Middle East and Asia. In 2001 Sasol acquired the chemical business of Condea which produces olefins and surfactants primarily in Europe and the USA.
Sponsorship
Sasol were the title sponsors of the Jordan Grand PrixJordan Grand Prix
Jordan Grand Prix was a Formula One constructor that competed from 1991 to 2005. The team is named after Irish businessman and founder Eddie Jordan...
team during the 1992, 1993 and 1994 Formula One World Championship seasons.
Sasol was the shirt sponsor of the Springboks
South Africa national rugby union team
The South African national rugby union team are 2009 British and Irish Lions Series winners. They are currently ranked as the fourth best team in the IRB World Rankings and were named 2008 World Team of the Year at the prestigious Laureus World Sports Awards.Although South Africa was instrumental...
(the South Africa national rugby union
Rugby union
Rugby union, often simply referred to as rugby, is a full contact team sport which originated in England in the early 19th century. One of the two codes of rugby football, it is based on running with the ball in hand...
team) and continues to sponsor the Sasol Tigers aerobatic team flying Aero L-29 Delfin
Aero L-29 Delfin
|-See also:-References:* Gunston, Bill, ed. "Aero L-29 Delfin." The Encyclopedia of World Air Power. New York: Crescent Books, 1990. ISBN 0-517-53754-0....
.
Sasol was a founding partner of the South African National Youth Orchestra Foundation
South African National Youth Orchestra Foundation
The South African National Youth Orchestra Foundation is a non-profit organisation in the music education and development sector. The Foundation supports the training and development of South Africa’s young musicians through national courses, national and international tours and workshops, and...
in 1979, and is currently still supporting this foundation.
The company also sponsors the SASOL Birds of Southern Africa bird field guide
Field guide
A field guide is a book designed to help the reader identify wildlife or other objects of natural occurrence . It is generally designed to be brought into the 'field' or local area where such objects exist to help distinguish between similar objects...
.
Controversies
In 2009 Sasol agreed to pay an administrative penalty of R188-million as part of a settlement agreement with the Competition Commission of South Africa for alleged price fixing, in which a competitor alleged that Sasol was abusing its dominance in the markets for fertilisers by charging excessive prices for certain products.Sasol also had to pay a €318-million fine to the European Commission (EC), which is about R7,9-billion, for participating in a paraffin wax cartel. Despite its indication that it would appeal the fine amount, the full amount had to be paid to the EC within three months of the fine being issued.
External links
- Sasol Official website
- How Nazi Germany and apartheid South Africa perfected one of the world's most exciting new fuel sources. Slate Magazine
- Google Maps view of Sasol's Secunda plant
- SciFest Africa, part of Sasol's investment in science education in South Africa
- Sasol suffers shareholder fury at AGM over e318m EU fine
- Activist shareholder turns the screws on Sasol
- Fury at Sasol’s AGM over price-fixing fine
- Greenpeace Sues Sasol for Corporate Espionage - video report by Democracy Now!Democracy Now!Democracy Now! and its staff have received several journalism awards, including the Gracie Award from American Women in Radio & Television; the George Polk Award for its 1998 radio documentary Drilling and Killing: Chevron and Nigeria's Oil Dictatorship, on the Chevron Corporation and the deaths of...